| Thu 5 May 2011, 10:43 | | ING - Ingenuity Property Investments Limited - Announcement regarding the |
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ING
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ING - Ingenuity Property Investments Limited - Announcement regarding the
acquisition of a property
INGENUITY PROPERTY INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2000/018084/06)
ISIN: ZAE 000127411 JSE share code: ING
("Ingenuity" or "the Company")
ANNOUNCEMENT REGARDING THE ACQUISITION OF A PROPERTY
1. Introduction
Ingenuity shareholders are advised that the Company has entered into an
agreement of sale ("the Agreement") with Charden Investment Company
(Proprietary) Limited ("the Seller"), in terms of which Ingenuity will
purchase the property known as Atlantic Centre and situated at the
corner of Oswald Pirow Drive and Louis Gradner Street, Culemborg, being
Erf 34, Roggebaai, City of Cape Town, Province of Western Cape ("the
Property") ("the Acquisition").
The effective date of the Acquisition is on transfer of the Property
into Ingenuity`s name, which is to be on or as close as possible to 1
July 2011 ("the transfer date").
2. Rationale for the Acquisition
In line with Ingenuity`s investment strategy of growing the Company with
quality assets, the Acquisition is strategic to the current Foreshore
complex of properties that it already owns. It is the intention of
Ingenuity to re-develop the Property ("the re-development") as soon as
the current tenant vacates the Property on expiry of the existing lease,
which is 30 September 2011. Thereafter, the Property will be
comprehensively refurbished and converted to an A grade office block,
with 3 additional floors added to the existing structure.
The Acquisition gives Ingenuity predominant control of the city block
and is strategic in unlocking the remaining bulk on its greater
Foreshore complex.
3. Consideration for the Acquisition
The total consideration for the Acquisition is R60 million ("the
purchase consideration"), to be settled in cash out of current cash
resources and borrowing facilities on the transfer date.
4. Suspensive conditions
All suspensive conditions relating to the Acquisition have been
fulfilled.
5. Specific information relating to the Property
Details regarding the Property are set out below:
Property Location Sector Gross Single Weighted Total Value of
lettable or multi- average purchase Property
area m2 tenanted rental price of Rm (1)
per sqm Property
(2) Rm
Erf 34, cnr of Office 4 949 Multi R 64.80 60.0 50.0
Roggebaai, Oswald /retail
City of Pirow
Cape Town Drive and
Louis
Gradner
Street,
Culemborg
, Cape
Town
1. The value of the Property of R 50 million was arrived at by an
independent registered valuer, Mills Fitchet Magnus Penny
(Proprietary) Limited, as at 1 April 2011.
2. Weighted average rental will only apply until 30 September 2011
when the existing lease expires and the re-development commences.
6. Unaudited pro forma financial effects ("Financial Effects") of the
Acquisition
Based on Ingenuity`s unaudited consolidated interim results for the six
months ended 28 February 2011, the Financial Effects of the Acquisition
on Ingenuity`s earnings per share, headline earnings per share, net
asset value per share and net tangible asset value are not disclosed as
these are not significant.
7. Categorisation
The Acquisition is a Category 2 transaction in terms of the JSE Limited
Listings Requirements.
5 May 2011
Cape Town
Investment bank and Sponsor
Nedbank Capital
Date: 05/05/2011 10:43:54 Produced by the JSE SENS Department.
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